Got my first LTI equity grant, 25% of base/~€51k euros (~$58,600 USD) vesting over 3 years. Base is $233k plus 25% bonus. Thoughts on equity and comp? I feel like the equity is just imaginary money at this stage.

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Posting as :
works at
You are currently posting as works at

Do you get a cash bonus in addition to this?

But yes, treat it as imaginary money but do know, once it vests you'll owe tax on that. I've seen a lot of people get burned with something vesting, tax is triggered, and then the stock goes in the toilet. My general rule is to sell enough annually after a year and a day to at least cover the tax.

However, I typically liquidate my position after I can get long term capital gains/loss treatment and reinvest in a low cost index fund. I'm already earning a salary and if my salary increased by the amount of the vested, that's how I'd deploy the captial anyway. No reason to further expose myself to the idiosyncratic risk of my company.

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Yes I get a 25% cash bonus, so about $59k.

How many years of experience do you have?

2019 grad so figure approx 6-7 YOE.

You’re based in the EU? If so this is awesome comp.

I think TC is just shy of $350k as a 7th year and I typically work 9-4, sometimes later but not often.

What would you sell your imaginary money for? If your answer is more than zero, it is not imaginary.

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